ISTAT Appraised Values – Little Effect Noted by “Appraiser N”

The Covid Effect on aircraft values and lease has therefore been wide and varied depending on the perspective of the assessor. Indeed, there continues to be a considerable divergence of opinion among ISTAT certificated aircraft appraisers, which is somewhat surprising. Some ISTAT appraisers consider the Covid event to be nothing more than a minor hiccup while others consider it a catastrophe translating into either no change to values or a halving of value. Aircraft values generally fall by some 8-10 percent annum with those in demand falling by a lesser amount and those for which a surplus is evident, by considerably more. The six months between January and June would therefore expect to see a five percent fall even without the Covid event. Examining two different ISTAT certificated appraisal companies – Appraiser N and Appraiser H - highlights some divergent opinions as to the impact of the Covid event. with respect to narrowbody aircraft five years of age – ie 2015 - Appraiser N indicates that values of the A320ceo fell by eight percent between January and June. Taking into account, the average fall of five percent that would have been expected in any case, Covid has caused a three percent fall such that the value of the aircraft has fallen from $25.8 million in January to $23.75 million as of June. Appraiser H however, has a different perspective seeing a fall of 15 percent over the same timeframe. At the same time, AVAC indicated that values fell by some 22 percent between January and June with the last month seeing a very slight improvement from the depths of April, contrasting with H which has continued to see a fall of three percent.